Many believe that trading in stock market is matter of experience and knowledge but as per my opinion it is an art. An art that you will have to master before you put your money to trade, there are things you have to keep into mind. The following are the points that you should remember.
- Decide how you want to invest in the stock market
There are several ways to invest in the share market. There are strategies, there are options and there are the trading techniques that you could implement. So you should decide first that how you want to invest in the share market. You are going to start as an intraday trader or the delivery trader. You want speculative trade or you want the trade based on fundamentals and technical. Many aspects are there which you need to take care.
- Open an investing account
This is very basic thing you should remember. You must open an investing account to invest. Like if you want to start saving your money in the bank you need to open an Savings account with that particular bank. In the similar way you need to have trading account or investing account with your broker to start trade.
- Know the security in which you are investing
You must be clear with the securities in which you are investing. You should know in which segment you want to invest. Either in equity, derivatives or the trading style what you wish to follow.
- Set a budget for your stock investment
You have to decide in advance that how much money you want to invest in the share market. You should be clear that how much investment you can take risk of and also the return and the time for which you wish to invest in the share market.
- Start investing
Now you should start to invest.